But I'll keep in it mind, it has its advantages and disadvantages...

@Rose Davis Hi Rose, In my opinion the decision depends on your goals and the tax advantages/disadvantages.  

My area puts me at a disadvantage.

The Bay Area market ( south bay particular) is uber competitive.. just having a 5% down is a huge disadvantage to someone.. competing against all cash buyers..

Disadvantages Of Wholesaling The drawbacks are that you will be buying properties at 50 to 60 percent of value.

The disadvantage for someone like me who owns  duplex is that I pay the $300 fee as well, but my units will generate far less trash than the 6 unit building. 

There is no good reason, and a few disadvantages, to holding your rentals in an S-corp.  

As a first time buyer I'm worried that by going this route I'll be at an even greater disadvantage to investors with cash in a very competitive market.

Another disadvantage is by not closing, in the name of a LLC, you cannot take full advantage of the Federal Tax Code and minimize your Tax Exposure. 

This knowledge is important because without it, I will be at a competitive disadvantage to other investors, who would already know that $55k is a great price in the current market and thus would outbid me on anything worth having.